@EaglesFan2006 wrote:
I figure I am about a year away from wanting a mortgage. Currently, my credit has improved but it is still not what I want. About a year ago I was able to get a car loan. Six months ago I got 2 credit cards. I have handled these accounts perfectly. My student loans are also current, though balances are higher than I'd like. I do have 4 collections appearing. They are all several years old (2 tied to a bank account, 1 to a Gym account, and the other under dispute). I guess my question involves a good strategy to start getting ready. Is there any way to remove these collections? How much do they hurt me? I know my credit score is above 620, which is the mortgage minimum...but how will they look at my actual situation?
YMMV with the lender, but they may want the CAs paid. Paid or unpaid, the damage to your FICO score is the same. You'd want it off. They are likely hurting 100+. I wouldn't worry about the SLs, unless you are in a position to PIF before then.
Follow this for the CAs:
What Steps Do I Take - great for learning the repair process.
